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THREE LEADING BANKS PLEDGE $30 MILLION IN SUPPORT OF AFFORDABLE HOUSING IN NEW YORK CITY; EQUITY FUND ANNOUNCES $60 MILLION GOAL

 THREE LEADING BANKS PLEDGE $30 MILLION IN SUPPORT OF AFFORDABLE
 HOUSING IN NEW YORK CITY; EQUITY FUND ANNOUNCES $60 MILLION GOAL
 NEW YORK, May 5 /PRNewswire/ -- Bankers Trust Co., J.P. Morgan & Co. Inc. and Republic National Bank of New York today announced they are making a $30 million commitment to the New York Equity Fund 1992 Limited Partnership to support affordable housing in New York City's struggling neighborhoods.
 This unprecedented commitment signifies that affordable multifamily housing development is not only responsible social policy, but also an excellent investment opportunity.
 Bankers Trust Chairman Charles S. Sanford Jr. said, "Based upon the results of our past investments in the New York Equity Fund, we are confident the fund's 1992 Limited Partnership represents a sound investment while allowing us to address the critical need in New York City for affordable housing. This should spur other corporations to join in helping the fund realize its 1992 goal of $60 million in equity capital."
 Chairman Walter H. Weiner of Republic National and Vice Chairman John F. Ruffle of J.P. Morgan joined Sanford at a breakfast held at Bankers Trust to kick off the New York Equity Fund 1992 Limited Partnership. New York City officials and representatives of NYEF and other leading financial institutions and corporations were also present.
 Each bank is committing $10 million to the fund, nearly trebling their existing investments. The Bank of New York also announced a $5 million commitment to the effort. The $35 million total is more than half of the fund's 1992 goal.
 Walter Weiner, chairman of Republic National, said, "Working with NYEF, we have witnessed neighborhood renewal, the rebuilding of houses, new life for urban commercial strips, reinvigorated community organizations and strengthened bonds among business, community leaders and the city."
 "We support this creative, community-oriented approach to affordable housing development and neighborhood renewal," John F. Ruffle of J.P. Morgan said. "The fund's link to LISC and The Enterprise Foundation, their long-standing ties to New York's neighborhood-based developers and the city's substantial participation, ensures well-managed and high- quality developments and compounds the value of our investment dollars."
 Formed in 1988, the New York Equity Fund uses provisions of the federal Low Income Housing Tax Credit to channel investment capital into affordable rental housing development. The fund, a collaboration of the Local initiatives Support Corp. (LISC) and The Enterprise Foundation, supports nonprofit development by raising equity from corporate investors in exchange for tax credits. The Low Income Housing Tax Credit supplies corporate investors with a credit on corporate taxes in exchange for investment in construction or rehabilitation of low income rental housing and is the primary federal tool for producing affordable housing in America.
 Since 1988, the New York Equity Fund has raised $118 million in investment capital from New York corporations, including more than $46 million during its last equity campaign. The fund uses this private investment to leverage additional public and private financing and, working with dozens of non-profit community-based developers and the city of New York's Department of Housing Preservation and Development (HPD), has created more than 3,250 units of affordable rental housing.
 The NYEF 1992 Limited Partnership's goal will enable the fund to leverage financing for another 1,200 units of affordable housing. The fund finances developments through the city's LISC/Enterprise Housing Production Program.
 LISC Chairman John P. Mascotte said, "The unprecedented containment by these banks, three of the leading banks in the country, is a wonderful testament to the accomplishment of the New York Equity Fund. NYEF investors do make a difference, from the South Bronx to Harlem, from Bedford-Stuyvesant to East New York. Distressed neighborhoods now have a chance, because of the commitment of non profit neighborhood- based developers, the city and the capital investment by New York corporations channeled through NYEF."
 James W. Rouse, chairman of The Enterprise Foundation, said, "Corporate support of the New York Equity Fund makes available important housing resources for New Yorkers in need of decent, affordable housing. We hope the outstanding leadership and commitment demonstrated by these banks will encourage other investors to recognize the significant opportunities represented by affordable housing and join the 1992 equity campaign to help accomplish this critical social goal."
 The New York Equity Fund is one of three funds created by LISC nationwide to provide funds for affordable housing and neighborhood renewal. LISC, created in 1979 and based in New York City, is the nation's largest community development support organization, operating in 30 communities throughout the country and providing financing and other assistance to non-profit community-based developers. In the 11 years since its founding by the Ford Foundation, LISC and its affiliates have raised more than $620 million from more than 800 donors and investors to help more than 830 community-based developers expand their efforts to reclaim and rebuild their communities.
 Created in 1982, The Enterprise Foundation works in more than 90 locations with more than 190 neighborhood groups, building a national network of non-profit neighborhood groups and local partnerships to provide fit and affordable housing. Enterprise has raised more than $429 million from equity investments and loans from corporations, foundations and individuals, and has produced more than 17,250 affordable housing units across the country. The Enterprise Social Investment Corp. (ESIC), a subsidiary of The Enterprise Foundation established in 1984, has attracted corporate investment for the production of low-income housing, ESIC manages three national and 11 regional equity investment partnerships which have raised $330 million from more than 100 corporate investors to build nearly 13,000 units of housing in 68 commmunities.
 -0- 5/5/92
 /CONTACT: John Lebow, 212-455-9830, or Marilyn Katz 212-455-9800 both of NYEF, or Rochelle Lefkowitz of Bankers Trust, 212-245-0510, Phillip Burgess of Republic National, 212-525-6597 or Ellen Barry of J.P. Morgan, 212-648-9578/ CO: New York Equity Fund 1992 Limited Partnership ST: New York IN: FIN SU:


AH -- NY014 -- 6400 05/05/92 09:22 EDT
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Publication:PR Newswire
Date:May 5, 1992
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